Business Rates Relief for 2025/26: What You Need to Know
The UK government has confirmed the Business Rates Relief measures for 2025/26, as announced in the 2024 Autumn Budget. These updates, detailed in a letter from the Non-Domestic Rates Team, outline the latest relief schemes available for businesses across various sectors.
Business Rates Multipliers for 2025/26
The non-domestic rating multiplier and small business multiplier have been set as follows:
- Non-domestic rating multiplier: 55.5p
- Small business non-domestic rating multiplier: 49.9p
These multipliers determine how business rates are calculated and impact commercial properties across England.
Retail, Hospitality, and Leisure Business Rates Relief
Businesses in the retail, hospitality, and leisure sectors will benefit from 40% Business Rates Relief for 2025/26, capped at £110,000 per business.
- Eligibility criteria have been published to guide businesses on qualification requirements.
- Local authorities will include details of this relief in 2025/26 business rates bills.
- Businesses exceeding the £110,000 cap will receive the full eligible amount up to the limit.
Removal of Charitable Rate Relief for Private Schools
The Non-Domestic Rating (Multipliers and Private Schools) Bill has passed the House of Commons and is under review in the House of Lords. If enacted, charitable rate relief for private schools will be removed from 1 April 2025.
- Local authorities have been instructed not to issue business rates bills without this relief until the law is officially enacted.
Film Studios Business Rates Relief
A new Film Studios Business Rates Relief scheme was announced in the 6 March 2024 Budget, providing a 40% reduction on business rates for eligible film studios in England until 2034.
- This relief is backdated to 1 April 2024.
- Local authorities are encouraged to implement the scheme quickly and apply the relief where applicable.
Stay Informed on Business Rates Relief
These Business Rates Relief updates are crucial for businesses planning their financial strategy for 2025/26. If you need help understanding how these changes affect your business rates bill, contact our team for expert guidance.
For full details, visit the UK Government website.